The present invention is directed to a label applying system. Such systems have utility in various fields, including the application of labels to bottles, such as in the pharmaceutical industry. It is desirable that such a system should be adaptable to mass production techniques so that labels could be applied at high speed to bottles or other containers which likewise move at high speed. It would also be desirable if such a system could effectively operate without the need for complicated motors and gear trains. Ideally such a system should incorporate safety mechanisms to automatically turn off the system when an unsafe condition is detected. Additionally, such a system should have the capability of sensing when errors in the system, such as missing bottles or caps occur.